Absorbed Costs on the Closing Disclosure
When it comes to itemizing charges on the Loan Estimate (LE), TRID states that charges “absorbed” by the creditor do not need to be disclosed on the LE. An example of this would be where the creditor will require a credit report but will not charge the customer for it. The creditor will absorb that cost. Institutions need to remember; however, this is not the case when you complete the Closing Disclosure (CD). The CD is all about transparency, not only the amount of the fees but also who paid for what. So, a charge that is absorbed by the creditor, does not have to be on the LE but it must still be itemized and disclosed on the CD.
Jerod explains more in the video.
Published
2025/02/28
Jerod Moyer
Jerod is the leader of Banker’s Compliance Consulting’s training productions. He is a nationally recognized speaker. Whether it’s a conference, seminar, school, webinar or luncheon, it’s easy to stay engaged when he presents due to the amount of passion and energy he brings to each and every compliance topic. Jerod has spoken on behalf of the American Bankers’ Association, BankersOnline, many state banking associations, private compliance groups and financial institutions. He is a Certified Regulatory Compliance Manager (CRCM) and BankersOnline Guru. Jerod likes to spend his time (between reading regulations and producing compliance training!) relaxing at the lake with his wife and three children, following their activities or engaged in something sports-related!